New York in the game

The Toy Industry Association Chairman Arnie Rubin opened this year's ToyCon, held late last month in Phoenix, by saying “This year's ToyCon is all about change.”

While that remark rings true on many levels within the toy industry, one thing that won't change is the location of the American International Toy Fair, which will stay in New York through 2007 with a possible option for 2008.

Following the TIA board of directors meeting the organization released a statement saying “The board was unanimous in its decision to keep New York City as host…and continue a 102-year tradition,” Rubin says in the statement. “New York City is the business capital of the world.”

Playthings magazine followed up with Rubin and TIA president Tom Conley and found out the final decision was not reached without intensive labor by all involved.

“There are a lot of moving parts involved,” explains Rubin, also CEO of Funrise Toy Corp, Woodland Hills, Calif. “We have to make certain the October portion works; that we find a location for the Toy Center that works.”

Rubin says that a number of things still must come together for the industry to continue with its strategic growth plan.

“One thing is contingent on another,” Rubin says. “A building must be found. That requires city support, state support, and all of the agencies involved—that they live up to the commitments that were made on Javits.”

Among the incentives made toward keeping Toy Fair in New York are:

• Reducing drayage costs, with current negotiations reducing costs by 20 percent.
• The Javits Center retaining an “official” transportation provider in a company called Golden Touch, which would provide continuous service from 9 a.m. to 7 p.m. with no more than five-minutes between shuttles.
• Guaranteed airport rates of $17 to LaGuardia and $19 to both Kennedy and Newark.
• A central transportation hub at Javits.
• In-kind incentives such as airport welcome signage, Big Apple greeters, airport concessions discounts, and various video networks providing information at the Javits Center.

The total value of incentive is about $244,000, according to the TIA.

“There is no doubt that Javits is not in the same league as some of the other venues we inspected,” says Rubin. “Orlando has a facility that puts Javits to shame, but we've chosen to stay with the City of New York because they have come to the party and said they are going to improve things. They are going to address some of the issues like drayage, transportation—which has been horrendous—and other costs to our exhibitors. All of these things have to come into play. Plus, they are talking about breaking ground and expanding Javits…that would accommodate our strategic plan for future growth.”

While the decision to stay in New York came down to a TIA board vote, the association on a day-to-day basis actively pursued avenues of keeping the show in the city while also weighing other venues. According to Conley, the process brought to light some outsider perceptions about Toy Fair being in New York.

“Two years ago at Javits I had the opportunity to meet with Cristyne Nicholas, who is president of NYC & Company,” explains Conley. “And for the first time ever we were having a conversation and walking the show. She said to me 'Of course you would never leave New York, would you?' And I said, 'what makes you think that? We are a business facing a lot of challenges and we have to evaluate all of our options.'

“From that day forward 'til now there has been a constant dialogue not only with NYC & Company, but with the Economic Development Council, the people in Albany who control Javits, and the Javits people themselves.”

Conley described doing business in New York City as perhaps the most complex big city to do business in around the country because of the layers of infrastructure involved in putting on a show.

“But it is safe to say they all know who we are now, and how valuable we are,” says Conley. “Quite frankly, everyone involved has stepped up and wants to help [keep us here].”

According to Rubin, Toy Fair brings New York $55 million in revenue every year, and the negotiations and commitments from the parties involved have moved away from the idea that things are the way they are because they have always been that way. No more. The current mantra of the TIA seems to be: if you want Toy Fair here, show us how much.

While keeping Toy Fair in New York was the top priority for TIA, finding a new place to call the International Toy Center is being fast-tracked. But it isn't an easy task due to the unique needs of the industry.

“In the fact that leases aren't being renewed, we have an obligation to our members and the tenants to have a home and that they are not disenfranchised because they can't renew their leases,” says Rubin.

The catch is finding a landlord that will work with hundreds of individual leases, not a “master” Toy Center lease, which severely limits prospective buildings.

“While we are working together, the TIA, because it is a non-profit trade association, is not and never will be in a position to sign a master lease for space,” explains Conley. “So a landlord who is going to lease space has to work with every entity individually. But what we are doing and what we are committed to is creating a model so tenants have some starting point.

“Some landlords, for whatever reason, don't want to take that deal,” Conley continues. “So at the end of the day what appears like a choice of 30 buildings is really like five or six when you consider things like a proper lobby set up or a freight elevator. I think we are a great piece of business, but we are not an easy piece of business.

Both Rubin and Conley agree that speed is very important in finding a new building to house the industry. They said they've given themselves six to eight months to “make darn sure that the building is up and running by the time the fall 2006 show hits.”